- The AES Corp AES disclosed a long-term growth strategy for renewables and US utilities business.
- The company initiated annualized growth outlook for adjusted EPS of 6% to 8% through 2027, from a base of 2023 guidance of $1.65 to $1.75 (consensus: $1.72).
- The company projects increased contributions from new renewables and investments in the rate base at its utilities Strategic Business Unit (SBU) in the long term.
- AES sees lower contributions from the Energy Infrastructure SBU on planned exit from coal by year-end 2025, asset divestiture, and higher parent interest as long-term headwinds.
- AES anticipates annualized adjusted EBITDA growth of 3% to 5% through 2027 versus 2023 guidance of $2.600 billion to $2.900 billion.
- AES reiterated adjusted EPS annualized growth target of 7% to 9% through 2025, vs. 2020.
- The company plans to maintain an annual dividend growth rate of 4% to 6%, subject to Board approval.
- Andrés Gluski, AES President and CEO stated, "Through 2027, we expect to nearly triple our renewables capacity by adding 25 to 30 GW of solar, wind and energy storage to our portfolio, while simultaneously delivering annual rate base growth of 10% at our US utilities. Our diversified portfolio will support and enable this growth as we advance our transformation by fully exiting coal by year-end 2025."
- Also read: AES Clocks ~14% Revenue Growth In Q1, Introduces 4 New Strategic Business Units
- Price Action: AES shares are trading lower by 2.6% at $22.08 on the last check Monday.
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